Euro Appreciates After Hawkish ECB Remarks
21 Juni 2022 - 9:28AM
RTTF2
The euro spiked up against its major counterparts in the
European session on Tuesday, following comments from European
Central Bank Chief Economist Philip Lane that a bigger 50 basis
point hike is possible at the meeting in September.
The ECB would not revisit its decision to raise interest rates
by 25 basis points at its meeting next month, Lane said on
Monday.
The exit from negative rates would be done in two stages, first
by lifting the negative 0.5 percent deposit rate to minus 0.25
percent in July and by a possibly larger amount in September, Lane
told.
"With inflation rising sharply, there has been good reason to
expedite the normalisation of monetary policy," ECB Governing
Council member Olli Rehn said.
ECB President Christine Lagarde told the European lawmakers on
Monday that the decision to develop a crisis tool underscored a
previous commitment to keep inflation under control.
German bond yields rose, with the yield on the 10-year German
bund reaching 1.75 percent.
The euro climbed to 1.3669 against the loonie, from a 4-day low
of 1.3613 it touched at 2 am ET. If the euro rises further, 1.38 is
likely seen as its next resistance level.
The euro advanced to a 5-day high of 1.0582 against the
greenback and a 4-day high of 1.0215 against the franc, coming off
from its prior lows of 1.0506 and 1.0163, respectively. The next
possible resistance for the euro is seen around 1.08 against the
greenback and 1.05 against the franc.
Reversing from its early lows of 1.5079 against the aussie and
1.6578 against the kiwi, the euro moved up to a 6-day high of
1.5170 and a 4-day high of 1.6651, respectively. The euro is likely
to find resistance around 1.53 against the aussie and 1.72 against
the kiwi.
Against the pound, the single currency was up at 0.8597. Next
key resistance for the euro is likely seen around the 0.88
level.
The euro firmed to its highest level since June 9 against the
yen, at 143.21. The euro is seen finding resistance around the
145.00 level.
Looking ahead, Canada new housing price index for May and retail
sales for April and U.S. existing home sales for May will be
featured in the New York session.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
Von Mär 2024 bis Apr 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
Von Apr 2023 bis Apr 2024